Google acquired Gizmo5
November 10, 2009 | Author: Adam Levine
Multiple sources (including TechCrunch) say that almost exactly Google has bought Gizmo5 for $30 millions. If it's true, Skype now will get the very powerful competitor. Interesting, that month ago Skype was going to buy Gizmo5 itself in order to replace the Global Index technology (that was a reason of lawsuit) with Gizmo5 SIP-based platform. But now when Skype has after the Skype settlement, though, Gizmo5’s strategic value to Skype sort of plummeted. But, it turns out, that Gizmo5 has the strategis value to Google. And, really, it ideally fits Google's communication plans. First of all, GTalk can call only between internet users, but can't call PSTN and mobile phones. Gizmo5 will easily provide this opportunity to GTalk users.
Second, Google Voice, since its launch, used Gizmo5 as a primary VoIP provider, so Google is interested in controlling this service and earning money on it. And third, Gizmo5 can become the link between GTalk and Google Voice and unite them into single ideal unified communications service.
Should Skype start to panic? Of course, so far Gizmo5 user base (5 millions) can't be compared to Skype's (600 millions). But most of Skype users are also Google users, and if Google provide an integrated solution, they can migrate from Skype. Anyway, this users will only win from this competition.
See also: Top 10 VoIP services